If an additional, or top-up loan is granted without your consent

If the borrower has taken another loan with the same lender without your knowledge or consent 😠

You can contact the lender and ask them to consider removing your guarantor’s responsibilities due to a significant change in circumstances.

You are likely to be liable to repay the outstanding on the original amount sanctioned.

4

If you find a suitable replacement guarantor for the loan

If your circumstances change, it could be worth approaching your lender with an application for a release from your obligations if you have found a suitable substitute guarantor for the loan 🙏

If the lender is 100% certain that the credentials of the substitute borrower are suitable, they may consider allowing the swap to be made.

This decision is solely at the discretion of your individual lender. For example, Amigo Loans will only allow the guarantor to be changed in the period between the loan application being agreed and the money being paid out.

5

If you get the borrower to repay the loan in full

The main way to remove your responsibilities as a guarantor is for the borrower to repay the loan in full 💸

Most lenders allow early repayments in full

Without penalty

Contact the lender to discuss.

6

If you repay the loan in full

If you repay the debt in full, then you will be released of your guarantor obligations.

One option if you have the funds is to do this, and have the borrower repay the debt back to you as a loan.

Most lenders allow early repayments in full.

Related FAQs

1

Can I change my guarantor?

At the time of writing, once the loan agreements have been signed, and loan funds paid out, it’s not possible to change your guarantor 👎

Genuine Reason – though this is always subject to change, and if there is a genuine reason as to why your guarantor should be changed (such as a change in their circumstances), you should contact your lender straight away to discuss your options.

Cooling-off period – note the 14-day cooling-off period, so if you really do need to change your guarantor, it’s theoretically possible to cancel your agreement in this period, pay back the loan, then take out a new loan with your replacement guarantor. However, you could be liable for loan fees, depending on the specific lender’s terms.

2

What happens if my guarantor dies?

In the sad event of your guarantor dying, you should contact your lender to discuss the situation 📞

The lender will probably have a claim over their estate or property in order to recover any debts due

Though your guarantor should only liable for your loan debts if you stop paying.

Representative Example: If you borrow £4,000 over 36 months at a Representative rate of 49.5% APR and an annual interest rate of 49.50% (variable), you would pay 36 monthly installments of £194.52. The total charge for credit will be £3,002.72 and the total amount payable £7,002.72.

IF YOU ARE THINKING OF CONSOLIDATING EXISTING BORROWING YOU SHOULD BE AWARE THAT YOU MAY BE EXTENDING THE TERMS OF THE DEBT AND INCREASING THE TOTAL AMOUNT YOU REPAY

We are licensed credit broker and not a lender. Nothing on this website constitutes financial advice. If you need financial advice, you should speak to a qualified financial advisor. This website provides information only. The choice of product is yours and yours alone. As a broker we process the information you provide us and we may pass this onto our trusted third party lenders and brokers. All credit is subject to you being a UK resident, aged 18 or over and your personal circumstances. All lenders operate responsible lending policies and as such credit is subject to affordability.